Do you want to trade with leverage with no settlement risk, automated risk management, and more profits? Then this article on how to trade with leveraged tokens in ProBit may interest you.
What are the leverage tokens available on ProBit?
They are ERC 20 tokens that provide access to the magic of leverage for trading cryptocurrencies, without having to deal with a leveraged position.
They were created by the FTX exchange, and now they are also available on ProBit, an exchange that provides the platform to access to trade with these tokens.
By using them, you will be able to access a leveraged position, but without the worries of collateral, margin, financing fees or settlement.
How do they work?
Let’s use the BTCBULL token as an example, which has a leverage of 3X. When BTC fluctuates 10%, the base asset, BTCBULL fluctuates 30%, either up or down.
Each token gets its price from trading perpetual futures on FTX. That is, think that you decide to buy $ 1,000 of BTCBULL tokens, this sends a buy order for $ 3,000 to the perpetual BTC futures on FTX, so now the token is leveraged by 3X.
The same procedure can also be done in the opposite direction. Sell your $ 1,000 in BTCBULL tokens, which will be used to sell the futures worth $ 3,000, thus destroying the tokens, and sending the $ 1,000 to your account.
Why are they worth using?
Using the leveraged tokens available on Probit brings a number of benefits, including:
No liquidation risks
Because they can be purchased on the spot market, there is no need to manage margin, collateral, or settlement prices.
The BULL and BEAR tokens automatically reinvest the earnings in the underlying asset. In the opposite case, they also reduce the risk in case you lose money.
For example, if you use traditional 3x leverage for an Ethereum purchase, your position will be automatically liquidated when the price decreases 33%.
But if instead you buy BTCBULL tokens, the position will decrease automatically, avoiding liquidation even with a downward movement of 33%.
In ProBit there are also HALF tokens, which are half leveraged, so they sell their underlying when it rises, and will buy it again when it falls.
Take them to your wallet!
Because they are ERC 20 tokens, unlike traditionally leveraged positions, these coins can go into any ETH-compatible wallet. This means that you can have custody of them.
Buy tokens with leverage at ProBit!
Are you interested in using this form of leverage in ProBit? What are you waiting to use them? They are really easy to access!
Just sign up and log into ProBit. Then go to the “Exchange” section and write the name of the token you want to trade with, either BTCBULL or BTCBEAR.